"TDS accounts for 55pc of total direct tax collections "
The tax deduction at source (TDS) currently accounts for about 55 per cent of the overall direct tax collections from across India and about 46 per cent of the direct tax collections of the Delhi region, M. Sailo, chief commissioner income tax, Delhi-1 said in New Delhi on Tuesday.
"With the changes in the law and mandatory processing of TDS statements, the TDS administration has become an integral part of our overall organisational set up," said Sailo while inaugurating a national seminar on TDS organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
"Looking closely at the revenue growth, we see the importance of TDS, for instance, currently the all India collection of direct taxes stands at over Rs 2.82 lakh crore out of which TDS accounts for Rs 1.54 lakh crore which is as of today is 55 per cent of total collections," said Sailo.
"In Delhi charge itself out of the total collection of over Rs 43,000 crore so far, TDS alone accounts for about Rs 20,000 crore i.e. 46 per cent of total collections of Delhi region."
The TDS collections in Delhi is growing at a healthy rate of about 17-18 per cent, said Sailo while hoping for the growth to continue at the same rate during the remaining financial year.
The chief commissioner income tax, Delhi-1 also acknowledged the effective role played by the deductors in the success of TDS.
Sailo further said that success of TDS administration is an example of effective holding of tax administration under deductor assessee in the partnership to collect taxes.
"We need to continuously explore further ways to strengthen this partnership and also promote voluntary tax compliance."
The tax deductors with a strong tendency of holding back taxes deducted deprives the government of its much needed taxes, said Sailo while informing that the Central Board of Direct Taxes (CBDT) has taken serious note of such tax deductors and has ordered the officers to launch prosecution in fit cases.
"The CBDT has taken serious view of non-filers and has incorporated a new section 234E in the Act which levies a fee of Rs 200 for everyday of delay and the system does not accept the TDS statement until the delay fee has been paid," said Sailo.
"Further a new penalty, section 271 H has been introduced specifically for failure to file TDS statements."
Talking about the computerisation of processes, Sailo said that administration is facing the teething problems and will come across various glitches and there is a need to remain patient during this course of transition.
"In the TDS charge all the work is done over the system and the processing often leads to a mismatch as particulars filed do not match the payment particulars," said the chief commissioner income tax, Delhi-1.
Talking about the errors made by deductor assessee while filing the TDS statements, Sailo said, "Deductors are urged to file the collection returns and clear the demands which may be due to errors or they can approach the AO-TDS for giving credit to challans available, however, the balance demands have to be paid up."
"For the current remaining financial year the field officers of TDS would continue with their work of processing the TDS statements and attending to rectification," said Sailo while talking about the Central Processing Centre which is being set up.
The Local Standing Committee on TDS looks after resolving the various practical problems faced by the deductors, said Sailo. "Such committees are present in each of the 18 TDS commissioneraites spread all over India."
Sailo also urged the industry and other stakeholders to take immediate steps to resolve the mismatches and to continue with the statutory functions cast upon us as the collection of taxes by way of TDS is one of the ways of contributing towards the sovereign function of the state.